Oil stabilizes close to 5-month high as dollar declines on week's last session

Crude oil futures rose during the Asian session to stabilize near its highest level since the first half of last November amid negative stability of the dollar index, in line with the inverse relationship between them, and on the threshold of developments and economic data expected on Friday by the US economy, the World's largest producer and consumer of oil, amid the shutdown of most of the global financial markets due to the Good Friday holiday.

At 13:13 GMT, Nymex crude futures for May delivery rose by 0.39% to trade at $64.00 per barrel, compared to the opening at $63.75 per barrel. Brent crude futures for (June 15 delivery) rose by 0.43% to trade at $71.95 per barrel compared to the opening at $71.55 per barrel, while the US dollar index fell 0.01% to 97.41 compared to the opening at 97.42.

 On the other hand, investors expect the US economy to release the the housing market data with the reading of both the Construction Starts Index and Construction Permits, which may reflect a rise in March, where construction permits are expected to rise 0.7% to 1,300K. Compared to a drop of 1.6% at 1,296 thousand. Initial construction starts may also rise 5.9% to 1,230,000 versus 8.7% at 1,162 homes.

This comes hours after the report of the US Energy Information Administration of oil stocks last Wednesday, the deficit of 1.4 million barrels during the week of 12 this month compared to a surplus of 7.0 million barrels in the previous weekly reading, contrary to expectations that indicated a reduction of surplus to 1.6 million barrels, Stocks to 455.2 million barrels, while stocks remain 2% lower than the average of the last five years.

 This comes hours after the U.S. Energy Information Administration (EIA) announced on Wednesday that the country's inventories fell by 1.4 million barrels in the week ending April 12, the first weekly drop in a month, contrary to experts' expectations of a rise of 1.6 million. to reach a total of 455.2 million barrels and remain 2% lower than the average of the last five years.

In the same context, the report showed that the motor fuel stocks fell by 1.2 million barrels,1% less than the average of the past five years for the same period, distillate inventories (including heat fuel) also fell 400,000 barrels to 127.7 million barrels. while stocks remain 5% lower than the average of the last five years.

Otherwise, Baker Hughes announced yesterday that the number of crude drilling rigs and platforms by about eight platforms to a total of 825 platforms and US production levels stabilized recently at 12.1 million barrels per day, which is the highest US production level ever recorded.

On the other hand, we also followed yesterday, official data showed by Saudi Arabia, the world's third largest oil producer and the largest producer of OPEC Countries, which stated the decline of the Kingdom's oil exports to 6,977 million barrels per day during February Compared with 7,254 million in January.

 It is noteworthy that some of the report touched on the recent period of the Kingdom of Saudi Arabia work to reduce oil production more than agreed within the agreement of OPEC and its oil producers from outside the Organization to reduce global oil production by 1.2 million barrels per day during the first half of this world, To reduce production below the seven million barrels per day barrier.

In another context, the Russian Energy Minister Alexander Novak said last Wednesday it is still too early to talk about Moscow's options on the production agreement to reduce the global production led by OPEC, which is supposed to expire by the end of June, adding that his country will To take the appropriate decision at a later date, and the aim of the agreement is to balance the global oil market and not to reach a specific level of oil prices.

Also, Russia's Finance Minister Antoine Silwanov said on Sunday that his country and the Organization of the Petroleum Exporting Countries may decide to increase oil production after the current agreement expires. A move that could lead to a drop in oil prices to $ 40 a barrel aimed at maintaining market share and countering US hegemony.